Selbständige in die gesetzliche Rentenversicherung? / Should Self-employed Persons Subject to the Statutory Pay-as-you-go Pension System?: Wohlfahrtseffekte einer Ausweitung der Versicherungspflicht / Welfare Effects of Extending Compulsory Insurance to Include Self-employed Persons

Jess Heinrich ()
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Jess Heinrich: Bundesversicherungsanstalt für Angestellte, Dezernat Finanzmathematik einschl. Geldstelle (9001), D-10704 Berlin, Germany

Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), 2004, vol. 224, issue 3, 292-316

Abstract: The present paper is based on earlier studies by Kifmann (2001 ) and Buslei (2002) and constitutes an evaluation of the effects of subjecting self-employed people to the statutory pay-as-you-go pension system from 2005 onwards by using a computable general equilibrium model with overlapping generations. As opposed to earlier studies, for the first time this study takes into account future demographic developments and higher life expectancy as a function of socio-economic characteristics. Simulations are performed for a small open economy and a closed economy in consideration of adjusted investment cost. In further simulations, the old-age quotient is changed in the period from 2020 to 2030 to reduce the replacement rate to 60%.For the purpose of this study, we distinguish between 5 income groups and between employed and self-employed persons. This results in intra- and intergenerational welfare effects which show that subjecting self-employed to statutory pay-as-you-go pension system and delaying the reduction of the net pension level in the period from 2020 to 2030 would mean that the group of people who are compulsorily insured at present could be permanently better off.

Keywords: Pension reform; overlapping-generation-model; intra- and intergenerational welfare; Rentenreform; Generationenmodell; inter- und intragenerative Wohlfahrt.; Pension reform; overlapping-generation-model; intra- and intergenerational welfare (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:jns:jbstat:v:224:y:2004:i:3:p:292-316

DOI: 10.1515/jbnst-2004-0302

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